Customers Retail Bank Selection Criteria in South Africa

Abstract

This study analysed the distinct factors that determine customers’ bank selection criteria in the South African retail banking sector. A sample of one hundred and thirty five respondents was used in the survey using simple random sampling technique. A structured questionnaire was used to collect data on customers’ perceptions on the magnitude to which numerous distinct factors significantly determine their choice of retail bank selection. The data collected using the instrument was processed and analysed using SPSS statistical package. The Cronbach’s alpha of 0.788 and the Keiser-Meyer-Olkin of 0.797 confirmed reliability of data and sampling adequacy; respectively. Using the Principal Component Analysis (PCA) technique, a total declared variance of 53.756 percent was accounted for by one component extracted from the analysis.

KEY WORDS: retail bank, selection criteria, customers